Believe it or not, almost one-third of all individuals over the age of 65 are making it on an income of minimum wage or less, with one in 20 not able to purchase birthday or Christmas gifts for their loved ones.
While shrinking savings and salaries are just one of the problems older individuals have to deal with low-interest rates on savings and checking accounts and high-interest rates on mortgages, it is becoming more and more difficult for individuals to maintain a standard quality of life in their later years.
However, there are multiple ways in which we can boost our retirement income. Here are a number of tips to help you generate a larger disposable income during your retirement.
If you have lived in the same home for several years, it will more than likely be worth more than when you purchased it. By simply moving into a smaller home or another area you may be able to generate a large cash lump sum to help boost your retirement finances.
However, one must also consider the costs of selling a home which can include solicitor fees, stamp duty, removals, real estate agent fees as well as making any necessary repairs to the existing home.
If you are not in the situation to sell your beloved home, you may want to consider the process of unlocking a tax-free lump sum of cash through an equity release plan.
There is no need to make any monthly repayments and through flexible new plans, you are able to make regular or one-time payments towards the interest if you would like.
However, equity will reduce the value of your estate as well as the inheritance you leave behind. You can discover how much is possible to unlock through this free instant result calculator.
To figure out how much equity you can get check out this handy equity release calculator.
You may not be aware but there are several new mortgage products that are available to older homeowners as well as those who are retired.
If you have a number of years left on a mortgage or have been stuck in the mortgage lender’s Standard Variable Rate, it is possible to get a better rate by switching. If you are interested in an expert service that will research the market to help you find the best mortgage product for you.
Always keep in mind that you may have an early repayment charge through your lender if you choose to re-mortgage.
Savings And Investments
Most people who are nearing retirement are going to have some form of savings available in they can use to boost their finances.
However, the downside of using savings is you are not going to have a cushion to fall back on in the case of a financial emergency.
There may come a time when a financial emergency occurs. If there aren’t savings to dip into then looking into short-term loans with low-interest rates could be the answer.
A part-time job is not only a great way to boost your income but it serves another function of helping to keep you active, bring a more social aspect to your life, and help to provide a regular routine and structure to your days.
Renting A Room
If you have any spare rooms in your home, you may consider renting them out to help boost your budget. If you need a short influx of cash, you may consider renting to a foreign exchange student over the summer.
What about that holiday property? These can be an excellent source of income, even if they are only rented out on a temporary basis. Renting out your second home can help to boost your income greatly during retirement.